20 February 2018 Estonia implements key changes to corporate income tax rules including reduced tax rate for regular dividend payments Estonia has implemented a lower income tax rate of 14% for regular profit distributions compared to the standard rate of 20% (from gross amount), effective January 1, 2018. In practice, this tax rate can be applied to dividends distributed in annual periods beginning on or after 2019. However, as dividends paid to individuals will be subject to an additional 7% income tax withholding, the change does not lighten the tax burden of natural person shareholders. Document ID: 2018-0369 |
